Pakistan’s Energy Crisis Worsens as Gov’t Fails to Finds Bidder to Supply Natural Gas Before 2028
Samizdat – 04.10.2022
Pakistan Prime Minister Shehbaz Sharif has said that the European countries are purchasing most of the gas supplies available on the market, leaving Pakistan with no source of energy. Similar concerns about difficulties experienced by the ‘Global South’ in meeting their energy demands have been voiced by Indian Foreign Minister S. Jaishankar.
Islamabad has failed to find even a single bidder in response to a tender floated by Pakistan LNG Limited (PLL) for supplying liquefied natural gas (LNG) between 2023 and 2028, as per an official document.
As per tender documents, the PLL had in August invited bids for the supply of 72 units of LNG cargo starting in January next year. Under the terms of the tender, the government agency said it wanted to import 140,000 cubic meters of LNG every month for six years. The results of the bid were published on Monday.
A tender for procuring 10 cargoes of LNG floated by the Pakistani government in July had also failed to attract even a single bidder.
The latest development comes against the backdrop of an ongoing energy and economic crisis in the South Asian country, which is grappling with power shortages owing to a shortfall in energy supplies spurred by high prices and a surge in demand in the European countries.
Pakistan has also been facing the problem of depleting forex reserves and is awaiting the disbursement of $1.17 billion from the International Monetary Fund (IMF) after reaching a staff level agreement (SLA) in July.
Billions of dollars in aid are also awaited from other countries such as Qatar, Saudi Arabia and the UAE, the authorities have said.
S&P Global said last month that power shortages have been exacerbated by unprecedented flooding, as major grid stations have been endangered due to the climate disaster and connectivity options have been disrupted.
Before the floods struck in June-July, Pakistan was already reeling under high energy import bills, which had surged 91 percent to $4.98 billion on a year-on-year basis as of the end of the financial year in June, as per the Pakistan Bureau of Statistics.
A report by Institute of Energy Economics and Financial Analysis (IEEFA) has said that energy import bills could increase to more than $32 billion by 2030.
The global surge in energy prices has largely been blamed on Western sanctions against Russia in the wake of the eruption of Ukraine crisis, with many European countries looking for alternatives to Russian energy.
As the EU seeks to draw down its reliance on Russia, which has been EU’s primary supplier of gas, many EU countries have ramped up their imports from other countries such as Qatar, another major producer of natural gas.
In many cases, the richer EU nations have been offering better rates for sourcing energy than the developing countries.
Western-imposed Green Agenda Would ‘Cripple’ Africa’s Energy Security, Energy Expert Warns
Samizdat – 01.10.2022
The African Development Bank Group estimates that more than 640 million Africans have no access to energy, with the continent enjoying an overall electricity access rate of just over 40 percent. Multinational energy giants have systematically underfunded local energy projects, all while searching for new sources of oil and gas for Western markets.
Despite its untold riches in energy and other natural resources, Africa remains the least developed continent on the planet when it comes to access to the benefits of this wealth by ordinary citizens. The International Energy Agency has estimated that among Africa’s 54 nations, only nine – Algeria, Egypt, Gabon, Ghana, Kenya, Morocco, Libya, South Africa and Tunisia, enjoy electrification rates of 85 percent or above.
Even countries endowed with large reserves of oil and gas like Nigeria, Angola, Sudan, Congo and Uganda have been unable to provide the vast majorities of citizens with access to these resources, with 38 percent of Nigerians, 57 percent of Angolans, and 71 percent of Ugandans lacking access to electricity.
For nations with smaller energy reserves, and those without proven oil and gas assets, the figures are even gloomier, with just 9 percent of Chadians and residents of the Democratic Republic of the Congo hooked up to the electricity grid, while only 12 percent of Liberians, 14 percent of the residents of Niger, and 18 percent of Somalis enjoy access.
The causes of the continent’s stunted energy status are multifaceted, ranging from the legacy of colonialism to decades of plunder of energy rich nations’ resources by foreign multinationals, to a dearth of capital for domestic investment, to efforts by Western powers and international institutions they control to force the region to reject fossil fuels in favor of renewables.
The problem has only been exacerbated by the global energy crisis caused by Western nations’ efforts to sanction or restrict Russian oil and gas purchases. In August, Germany’s Handelsblatt newspaper reported that European states have made a push to fix the energy shortfall by outbidding developing nations for contracts from other global suppliers, driving poorer countries out of the market.
Last year, Nigerian Environment Minister Mohammad Mahmood Abubakar accused the developed West of deliberately defunding Africa’s natural gas projects on the grounds that they contribute to the global climate crisis, notwithstanding the fact that the entirety of Sub-Saharan Africa produces just 0.55 percent of the world’s carbon emissions.
In 2021, the European Investment Bank stopped financing hydrocarbon development projects in Africa altogether as part of an “ambitious new climate strategy and energy lending policy.” The same year, the World Bank announced plans to shift resources from energy projects to “combating climate change.”
“Africa’s oil and gas sector is experiencing underproduction and underinvestment as major international majors exit portfolios in key hydrocarbon producing countries such as Nigeria and Angola,” says N.J. Ayuk, chairman of the African Energy Chamber, a Johannesburg-based nonprofit advocating energy development in Africa, for Africans.
“Projects operated by majors in the deep-water projects are cost intensive. But also, capital restrictions by Western financial institutions are crippling the African gas market. Without finance, energy poverty rates will go up dramatically,” Ayuk says.
Characterizing energy poverty as the “single most important issue” facing the continent, the expert dismisses Western-backed institutions’ efforts to push Africa toward renewable energy, pointing out that as things stand, underdevelopment of hydrocarbon resources means that 45 percent of the continent relies on highly polluting hard biomass for energy.
As for renewable sources of energy like solar, wind and hydrogen power, Ayuk warns that the push being made in this direction threatens to “cripple” the continent.
“Many existing power grids in Africa remain underdeveloped, such that an intermittent supply of energy can threaten the stability of an entire grid,” the observer says, referring to the tendency for renewable energy to depend heavily on weather conditions.
“Such is the case in Kenya, which is widely considered to be at the forefront of Africa’s energy transition, building momentum in the renewable sector with the 310 MW Lake Turkana wind farm and 50 MW Garissa solar PV station. Some 15 percent of Kenya’s installed capacity comes from solar and wind, but as our 2022 Outlook reports, they have experienced severe voltage instability. Better system management, upgraded infrastructure, and long-term power storage technology are needed to solve these problems, but implementing these things on a nationwide or continent-wide scale won’t happen overnight,” Ayuk explains.
Another problem is Africa’s “near-complete” dependence on foreign equipment and expertise for its renewables capacity, with the majority of solar cells and windmills made in China, Europe or the United States, who also provide training and tech related to the installation, maintenance and repair.
“Economically, this means fewer home-grown jobs for Africans in this sector until such capacity can be developed. It also ensures [insecurity] of supply in case war or politics cripples the ability to import key raw materials and workers,” Ayuk stresses.
What Is To Be Done?
An alternative to listening to foreign dictates on energy policy is to focus on domestic resources, and to partner with those nations which are ready to help Africa secure its energy independence.
For Ayuk, this means intra-African natural gas pipelines capable not only of working to diminish energy poverty, but stimulating a drive toward industrialization which will translate to jobs. To stimulate development, African nations will need to stimulate capital investments and reduce taxes, and to work conscientiously to focus on infrastructure for domestic use, instead of export.
“Energy demand across Africa is expected to triple within the next 20 years – faster than anywhere else in the world – as a result of population growth, rising incomes, and rapid urbanization. To meet such rapidly accelerating demand, Africa needs the ability to make use of its existing natural resources and human capital, and to employ tried-and-true solutions that will reliably keep the lights on when the wind won’t blow and the sun won’t shine. Mitigating climate change must remain part of the equation, but the perfect cannot be allowed to be the enemy of the good when so many people are starting from zero,” the analyst says.
Russia can play an important role in improving Africa’s energy security, the observer believes, with Moscow needing to step up its game on the fulfillment of memorandums already signed, and to engage in the financing of gas projects, as well as sharing the country’s substantial expertise on the construction of infrastructure.
Earlier this year, Nigerian Minister of Petroleum Resources Timipre Sylva announced that Russian investors had expressed an interest in the financing of a massive gas pipeline project running from Nigeria to Morocco. If implemented, the prospective 5,600+ km piece of infrastructure would connect nations along the entire West African coast to natural gas, serving as a catalyst both for electrification and for regional economic development.
Nigeria has over 206 trillion cubic feet of proven natural gas reserves valued at trillions of dollars, but has long been starved of capital for the development of these resources.
Speaking to Sputnik last week, Sylva expressed confidence that Nigeria and Russia would be able to cooperate to help stabilize the global supply of energy.
However, last month, Biden administration climate envoy John Kerry warned against long-term gas projects in Africa, claiming countries that make investments would be unable to recoup their investments beyond 2030, and that the continent should instead focus on cleaner energy sources.
Slovak Economy on Verge of Collapse as Energy Prices Soar – Prime Minister
Samizdat – 28.09.2022
Slovak Prime Minister Eduard Heger said on Wednesday that energy crisis and rising electricity prices could put the country’s economy on the verge of collapse unless the European Union provides more financial help.
Heger said that money allocated from an EU windfall tax, which is put on “abnormally high profits” of energy companies, should be equally distributed and Slovakia should receive 1.5 billion euros ($1.5 billion). The prime minister also hopes for additional help from Brussels that could provide Slovakia with 5 billion euros more from unused regional development funds to reduce energy bills for businesses.
“Otherwise [Slovakian businesses] will be closing and could actually collapse the whole economy,” Heger was quoted by the Financial Times as saying, adding that Slovak companies providing energy supplies would have to be nationalized if Brussels did not help.
Since 2021, energy prices in EU countries have been surging as part of a global trend. After the beginning of Russia’s military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the EU, energy prices have accelerated the growth, placing energy security high both on the global and national agenda and pushing many European governments to resort to contingency measures.
US Blew Up Russian Gas Pipelines Nord Stream 1 & 2: Former Polish Defense Minister
Der Spiegel says CIA warned German government of potential sabotage weeks ago
By Michael Shellenberger | September 27, 2022
A former Polish Defense Minister, Radek Sikorski, has attributed to the United States the sabotage of two pipelines, Nord Stream 1 and 2, which carry natural gas from Russia to Germany. “Thank you, USA,” Sikorski wrote on Twitter. Sikorski was Minister of National Defense from 2005 – 2007 and served as Deputy Minister of National Defense and Deputy Minister of Foreign Affairs, previously. He is currently an elected member of the European parliament.
Nord Stream 1 and 2 lie on the bed of the Baltic Sea. Nord Stream 2 was finished last year but Germany never opened it because Russia invaded Ukraine on February 24.
Poland’s Secretary of State, Stanisław Żaryn, denounced Sikorki’s claim on Twitter as “Russian #propaganda,” calling it “a smear campaign against Poland, the US, and Ukraine, accusing the West of aggression against #NS1 and #NS2. Authenticating the Russian lies at this particular moment jeopardizes the security of Poland. What an act of gross irresponsibility!”
But it’s not out of the realm of the possible that the U.S. is indeed behind the attack. President Joe Biden promised on February 7 to prevent Nord Stream 2 from becoming operational if Russia invaded Ukraine. “If Russia invades,” said Biden, “then there will be no longer a Nord Stream 2. We will bring an end to it.”
Reporter: “But how will you do that, exactly, since… the project is in Germany’s control?”
Biden: “I promise you, we will be able to do that.”
And:
Russian methanol industry shutting down – Kommersant
Samizdat | September 26, 2022
Methanol output in Russia has fallen to minimum levels necessary to keep production plants functioning, business daily Kommersant reported on Monday.
Suspension of trade with customers in Europe and a drop in domestic demand are forcing producers to dramatically reduce output and sell their produce to China at a knockdown price, the paper writes, citing its sources.
In 2020 Russia was the world’s fourth-largest methanol supplier, accounting for 10% of global exports, according to economic data portal TrendEconomy. Among top methanol importers are China, the US and India.
Methanol, the simplest alcohol, can be obtained from natural gas and has a variety of industrial uses. It’s a chemical building block for plastics, paints and building materials and also widely used in the car industry and as a fuel.
There are nine methanol producers in Russia with a combined output of 4.5 million tons a year with nearly half going for export, according to Kommersant. Last year the sector saw rapid growth against a backdrop of high global prices, and Russian companies had plans for further expansion. Russia’s main customer was the EU, and though methanol itself was not targeted by sanctions, transporting it by sea via EU ports became problematic due to shipping restrictions imposed by the bloc. Demand for methanol in China has slowed as well due to the country’s zero-Covid policy and subsequent lockdowns.
Methanol producers want to avoid closing plants completely as restarting them would be costly, however, some factories have already been partially shuttered, Kommersant writes.
EU farmers warn of food shortages
Samizdat | September 25, 2022
Vegetable producers across northern and western Europe are considering halting operations, thus further threatening food supplies, as a result of the energy crisis hitting the continent, Reuters reported this week.
According to the report, skyrocketing power and gas prices are the biggest cost facing vegetable farmers employing greenhouse cultivation. Two French farmers renewing their electricity contracts for 2023 told the media outlet they were being quoted prices more than ten times higher than in 2021.
“In the coming weeks I will plan the season but I don’t know what to do,” said Benjamin Simonot-De Vos, who grows cucumbers, tomatoes and strawberries south of Paris. “If it stays like this there’s no point starting another year. It’s not sustainable.”
Johannes Gross, deputy sales manager at the German cooperative Reichenau-Gemüse, told Reuters : “We face an overall increased production cost of around 30%. Some colleagues are thinking about leaving their greenhouses empty to keep the costs as low as possible. Nobody knows what will happen next year.”
The soaring costs of fertilizer, packaging and transport have also been adding to the pain. Even in countries with abundant sun, such as Spain, fruit and vegetable farmers are grappling with a 25% jump in fertilizer costs.
As farmers across the EU warn of shortages, supermarkets may switch to sourcing more goods from warmer countries such as Morocco, Turkey, Tunisia, and Egypt, the report says.
Germany’s “Tenfold Increase In Gas And Electricity Prices” Is Driving Out Industry
Europe’s energy policy is creating jobs – for the USA
By P Gosselin – No Tricks Zone – September 23, 2022
What leaves once, will not come again. While energy prices in Europe are going through the roof, they remain moderate in the USA. This will have serious consequences for energy-intensive industries.
The Wall Street Journal (paid article) is already rubbing its hands together for the US economy. It is twice beneficial: high prices for LNG exports and new jobs in the future. It’s Win/Win – Lose. One of the losers for Germany is Areclor-Mittal. Now they are turning down the first blast furnace. Here, too, the USA is profiting. The FAZ reports:
Arcelor-Mittal, the world’s largest steel producer, is shutting down two production facilities at the end of September due to high energy prices in Germany. “Until further notice,” one of the two blast furnaces at the plate steel site in Bremen will be shut down. And the direct reduction plant at the Hamburg long steel mill is also to be shut down. In addition to the already high costs for gas and electricity, the gas surcharge planned from October will place a further burden on the competitiveness of energy-intensive plants, it says in justification. ‘With a tenfold increase in gas and electricity prices, which we had to accept within a few months, we are no longer competitive in a market that is 25 percent supplied by imports,’ Germany CEO Reiner Blaschek is quoted as saying in a statement from Arcelor-Mittal.
In order to avoid gas consumption in Hamburg, the precursor iron is now being purchased from America in order to be able to continue production – more cheaply, but with a higher CO2 footprint. Reduced work hours is also being introduced at the production sites in Duisburg and Eisenhüttenstadt due to the difficult situation.”
From Suicide to Dead and Buried… Germany Now Provokes China
By Finian Cunningham | Strategic Culture Foundation | September 23, 2022
Not content with committing its nation to economic suicide from deteriorating Russian relations, the German government now wants to bury the corpse by sabotaging trade relations with China.
Robert Habeck, Germany’s trade minister, has riled Beijing by telling a G7 summit last week that Berlin was aiming to adopt a new China policy to “reduce economic dependency”. Habeck said Germany would strive to take tougher controls over Chinese foreign investment and move away from German reliance on China for key commodities such as semiconductors, batteries and other electronics.
Sounding tough in front of other Western members of the G7 forum (a redundant elite club if ever there was one), Habeck said, “the naivety towards China is over”. He said that trade relations would no longer be viewed in isolation from alleged human rights violations and other international concerns, presumably meaning China’s alleged hostility towards Taiwan.
Beijing slammed Habeck’s remarks and retorted that he was the one who is being “naive” in seeking to damage mutually beneficial bilateral relations.
German Chancellor Olaf Scholz doubled down on the provocation at the weekend when he was asked about China’s position on Taiwan. Scholz implied that Beijing was the hostile party in recent tensions over the breakaway island territory. He cautioned China: “It is important that we ban violence from international relations.”
It was another red flag being waved by Berlin in China’s face. Scholz doesn’t seem to realize, or doesn’t want to realize, that Taiwan is a sovereign part of China. That is the legal fact of treaties at the United Nations and the internationally accepted One China Policy. It is the United States, Britain, Australia, France and Germany that are increasingly deploying military forces in China’s territorial waters that are causing dangerous tensions and obliging Beijing to take a tougher position on defending its sovereignty, including its rightful claims over Taiwan.
What are the German leaders playing at? The recklessness of their stance and the damage being inflicted on the nation’s economy make you wonder whose interests are they serving. Certainly, it would seem, not the interests of the German population.
Germany, the economic engine of the European Union, is crashing headfirst from its insane sabotage of energy trade with Russia. It reminds you of those slow-motion car crash tests where dummies are flung into the windscreen. Now it’s heading for a Chinese wall.
The self-imposed cutting off of gas supply from Russia is wrecking German industry and plunging the population into a winter of misery of untold poverty and hardship. Many observers including Russian President Vladimir Putin are baffled by the willful embrace of economic suicide that the German government is rushing into.
For decades, the German export-led economy has been driven by a copious supply of low-priced Russian natural gas and oil. The coalition government in Berlin, which took over from Angela Merkel’s administration at the end of last year, has cut off links with Moscow as part of its support for Washington’s policy to isolate Russia. Germany has gone all in to support the U.S.-backed Kiev regime with heavy weapons supplied to Ukraine in a war with Russia.
So much for Scholz’s admonition to China to “ban the use of violence in international relations”. Berlin is fueling the conflict in Ukraine and along with the U.S. and other NATO powers is preventing any diplomatic process to find a peaceful resolution with Russia.
If the death blow to the German economy was not bad enough from the reckless policy toward Russia, now Berlin wants to kill relations with Beijing.
China is Germany’s top trading partner for the past six years. Bilateral trade has grown steadily. This year’s commerce is heading to surpass the 2021 record high of over $240 billion in Chinese-German trade.
With its 1.4 billion population, China is a vital market for Germany’s exporters, especially the all-important auto industry that drives the German economy. Nearly 40 percent of global sales for Volkswagen, Audi, BMW and Mercedes are in China, spurred by the latter’s phenomenal economic development.
The Berlin government is putting its economic lifeline with China at risk by adopting a policy of wantonly provoking Beijing. In this, the German “leaders” are following Washington’s bidding. They have done this with regard to sabotaging Russian relations. Now they are bent on repeating the folly toward China.
It is notable that Habeck, the German trade minister, is a member of the Greens in the coalition government with Scholz’s Social Democrats. The other senior Green in the coalition is Annalena Baerbock who is the foreign minister. Both of them are pushing an irrational ideological position of damaging Russian and Chinese relations. The Greens want to convert Germany to renewable energy sources like wind and solar power. That’s how they justify doing away with Russian hydrocarbons. But the calculation is woefully misplaced. German industries and the wider population need Russian gas to run their factories and heat their homes. The folly of cutting off Russian energy is backfiring big time. The absurdity is that Germany is now going back to dirty fuel from coal in order to desperately fill the power vacuum that has been self-inflicted by Green ideologues.
More than Green ideology, however, is the real underlying ideology of Russophobia and Sinophobia. Habeck and Baerbock are blinded by their subservience to Washington’s transatlantic agenda of dividing Europe from having normal neighborly relations with Russia and China.
Washington’s agenda is to promote U.S. hegemony and its presumed unipolar dominance in international relations. In short, American imperialism.
An extension of that agenda is to incite antagonism toward China. The encirclement of Russia goes hand in hand with the encirclement of China. It is no coincidence that as Washington escalates tensions with Moscow over Ukraine and NATO encroachment, it is also feverishly inciting tensions with China over Taiwan and dubious allegations of human rights violations by Beijing.
U.S. President Joe Biden’s administration and Congress are pumping weapons into Ukraine and Taiwan in a deliberate and one could say criminal bid to provoke military confrontation. The U.S. capitalist economy needs tensions and conflict to sustain its military-industrial complex, the beating heart of American capitalism.
If Germany’s Chancellor Scholz had any independence of thought, he would be better to remonstrate with Washington over the use of violence in international relations.
But there is no chance of Scholz and his government ever doing that. They are lackeys for Washington and are hopelessly brainwashed with ideological nonsense, Russophobia and Sinophobia.
This winter is already coming with dread for Germany and the wider European population over the policy choice to trash the cornerstone of Russian energy relations. With the further damage to German-Chinese relations, the Berlin political elite are shooting Germany and Europe in the head – twice.
German industries, businesses and workers are incensed by the stupidity of their so-called government which is more accurately described as a Washington-backed regime in Berlin. Angry protests on the streets witnessed in recent weeks in Germany and elsewhere across Europe against self-inflicted economic misery are but a foretaste of the explosive social unrest brewing.
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Film Review
Cover-Up Is an Indispensable Chronicle of American Overreach
New documentary about journalist Seymour Hersh uncovers the pathologies of US imperialism
By Leon Hadar | The American Conservative | January 2, 2026
Laura Poitras and Mark Obenhaus’s new film Cover-Up is more than a documentary about the legendary journalist Seymour Hersh—it is an inadvertent chronicle of the pathologies of American empire. As a foreign policy analyst who has long advocated for realist restraint in U.S. international engagement, I find this film both vindicating and deeply troubling. It documents, through one journalist’s extraordinary career, the pattern of deception, overreach, and institutional rot that has characterized American power projection for over half a century.
What makes Hersh’s reporting invaluable from a realist perspective is that it consistently exposed the gap between stated intentions and actual policy outcomes. CIA domestic surveillance, the My Lai massacre, the secret bombing of Cambodia, Abu Ghraib—each revelation demonstrated what realists have long understood: that idealistic rhetoric about spreading democracy and protecting human rights often masks cruder calculations of power, and that unchecked executive authority in foreign affairs inevitably leads to abuse.
The documentary’s treatment of Hersh’s Cambodia reporting is particularly instructive. Here was a case where the American government conducted a massive bombing campaign against a neutral country, killing tens of thousands of civilians, while lying to Congress and the public. This wasn’t an aberration, but the logical consequence of what happens when a superpower faces no effective constraints on its use of force abroad. In exposing the scandal, Hersh also documented how empire actually functions when stripped of its legitimating myths. … continue
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